schneider electric presentation · schneider electric presentation. disclaimer all forward-looking...

Jean-Pascal Tricoire

Chairman & CEO - Schneider Electric

Confidential Property of Schneider Electric |

Schneider Electric presentation

Disclaimer

All forward-looking statements are Schneider Electric management’s present expectations of future events and are subject to a number of factors and uncertainties

that could cause actual results to differ materially from those described in the forward-looking statements. For a detailed description of these factors and

uncertainties, please refer to the section “Risk Factors” in our Annual Registration Document (which is available on www.schneider-electric.com). Schneider Electric

undertakes no obligation to publicly update or revise any of these forward-looking statements.

This presentation includes information pertaining to our markets and our competitive positions therein. Such information is based on market data and our actual

revenues in those markets for the relevant periods. We obtained this market information from various third-party sources (industry publications, surveys,

and forecasts) and our own internal estimates. We have not independently verified these third-party sources and cannot guarantee their accuracy or completeness

and our internal surveys and estimates have not been verified by independent experts or other independent sources.


Our technologies ensure that

everywhere, for everyone and at every moment.

Page 3Confidential Property of Schneider Electric |

ENERGIZED

•+50% energy consumption by 2050 due

to urbanization, Industrialization , digitization.

• Electricity to grow twice faster than energy

consumption

•2.3 bn people do not have

either access or reliable access to electricity

EFFICIENT

•3X efficiency needed to solve climate change

•82% of untapped energy efficiency in buildings

•50% of untapped energy efficiency in industry

CONNECTED

• 10X more incremental connected devices

than incremental connected people by 2020

• 30bn connected things by 2020

• Software runs everything

when life is…

Sources : Industry Reports

Schneider makes life Safe, Reliable, Efficient, Sustainable and Connected


Resi. & Non-Resi. Buildings(38% of group revenues1)

Datacenters & IT(14% of group revenues1)

Industry & Machines(28% of group revenues1)

Infrastructure(20% of group revenues1)

Total

EFFICIENCY

AUTOMATION & SOFTWARE

ENERGY

(Low & Medium Voltage, Secure power)END MARKETS

~70% of Group

revenues

~30% of Group

revenues1. end-market exposure estimated on 2016 revenues

A pure play in energy and efficiency connected solutions


2016 revenues

(€ bn)

Worldwide

position

Building InfrastructureIndustryIT

Key technologies Low Voltage

& Building Automation

Medium Voltage

& Grid Automation

Discrete & Process

Industrial Automation

Critical Power &

Cooling, Services

10.7 4.95.53.6

#1 #1#2 discrete#1#4 process

Businesses of

Schneider Electric

2016 Adj. EBITA

Margin (%) 19.6% 9.7%16.7%16.8%

Serving our 4 end-markets: Residential & non-Residential Buildings,

Datacenter & IT, Industry & Machines, Infrastructure

Four global, leading, synergetic businesses


… with a balanced world-wide presence – 2016 Sales

A balanced worldwide presence with leading presence in new economies

€24.7 Billion2016 Sales

144,000employees in over 100

countries

5%of sales devoted to R&D

41%of sales in New

Economies

27%Western

Europe

27%Asia-Pacific

28%North

America

18%Rest of

the

World

A culture of partnership….


Upstream partnerships for supply

Partnership in technology and IT • A leading network of partners

~ 65% of sales via partners

500,000+ electricians

35,000+ panel builders

12,000+ system integrators

15,000+ machine builders

11,000+ certified developers

Schneider Electric – Assemblée Générale des Actionnaires 25 avril 2016 |

…enabling our products and solutions to reach customers in key end-markets


20of the largest oil

companies

11leading Food & Beverage brands

100+ water processing

plants

~40% of the hospitals

in the world

10 world level

utilities

3 of the 4 biggest large-

scale suppliers to the

Cloud

We equip….

One EcoStruxure architecture, serving 4 End Markets with 6 Domains of Expertise

Connected Products

Edge Control

Apps, Analytics & Services

En

d to

En

d

Cyb

ers

ecu

rity

Clo

ud

an

d/o

r

On

Pre

mis

e

InfrastructureBuilding Data Center Industry


EcoStruxure Architecture

EcoStruxureTM

GridEcoStruxureTM

IT

EcoStruxureTM

PlantEcoStruxureTM

Machine

EcoStruxureTM

BuildingEcoStruxureTM

Power

Asset Performance

Management as a Service

Apps &

Analytics,

Services

Edge

Control

Connected

Products

Buildings Industrial & machines Utilities & infrastructure Data Centers & Networks

StruxureWare Building Operations

allows data collection, analysis,

and management

Smart Building Service Plans

State of the art service plans

Altivar 340

Variable speed drive with

superior performance

and productivity

PACis 5.4

Digital Control System

Modicon M580 is the first PAC*

with built-in Cybersecure

Ethernet capabilities

Wonderware Online,

leading cloud based offering turning data into action

StruxureOn™increases data

center resiliency

Data Center Operation 8.0

Allow monitoring & Operation

of DC’s incl. Multi-tenant

Galaxy VX™

3-phase power protection

And we innovate at every level (selected 2016 launches)

Building IndustryData Center Infrastructure

Easergy T300

Remote Terminal Unit

Masterpact MTZperformance and reliability with

new digital capabilities


Building

InfrastructureData Center

Innovation At Every Level: A snapshot of EcoStruxure’s impact

Industry


AND MULTIPLE RECOGNITIONSWith CLEAR PRIORITIES

Climate

Ethics

Circular

economy

Health &

Equity

Development

Fortune Magazine: #24 / 50 Companies that are changing the world

DJSI Industry Leader

for the 4th consecutive year

CDP Climate Leader

part of the “Climate A list” for the 6th consecutive year

Ethisphere, world's most ethical companies

listed for the 7th consecutive year

FTSE4Good: listed for the 1st time since inception in 2001

3rd company globally for clean-energy in Carbon Clean 200 List

27th most sustainable company in the world in Global 100 most

sustainable corporations

10th greenest company in the world in Newsweek Global Green Ranking

Vigeo Eiris Industry Leader

Oekom Industry Leader

• Carbon neutrality by 2030• CO2 impact quantification of large customer

projects • Investment in R&D for sustainability

(EUR10 billion over 10 years)

• Human Rights policy• UN Guiding Principles on Business &

Human Rights (Ruggie framework)• Supplier Code of Conduct

• Zero Waste to Landfill• Maintenance, retrofit and end-of-life

services• Schneider ecoDesign Way to all new offers

• Employee Well-being program• Gender pay equity• One day training for every employee per

year

• Low carbon solutions for access to electricity (for 50 million people over 10 years)

• Fighting fuel poverty in mature countries• Employee volunteering for development


Sustainability at the core of everything we do – Our commitment is recognized

A predictable earnings growth and a strong shareholder focus


> More Specialized businesses

> Turn around profitability with main focus in Medium Voltage (MV)

> More products through #1 partner network

> More Services

> More Software

FY 2016

Products End-users systemsSoftware & Services

A DIFFERENTIATED EXECUTION STRATEGY(based on 2016 revenues)

Push organic growth on differentiated business models

Improve Systems (Equipments & projects)

A simplified strategy of accelerated growth of our profitable business

and improvement in our systems


~70%

~30%

+4-7% average organic growth in our

adj. EBITA over the next 3 years

Organic revenue growth

Improve profitability through identified

levers

…RESULTING IN ORGANIC GROWTH IN OUR ADJ.

EBITA IN THE NEXT 3 YEARS

AVERAGE ORGANIC GROWTH TARGET OVER

THE NEXT 3 YEARS (2017-2019)…

Around

3%

Solid org. growth in our adj. EBITA driven by revenue growth in 3 divisions

and from increased profitability in Infrastructure


IndustryITBuilding Infrastructure

Focus on Margin

improvement

Organic growth target over the cycle unchanged

11%to

15%

50%

A-

Return On Capital Employed2

Dividend payout ratio

Retain a strong investment grade credit rating~100%

13%to

17%

3%to

6%

Average organic growth across cycle1 with

~3% targeted in next 3 years outside

Infrastructure

Adjusted EBITA margin

Conversion of net income into free cash flow

1: Growth across economic cycle. The reference is the world GDP growth on actual base and market exchange rates

2: Return On Capital Employed (ROCE) is Adjusted EBITA after tax / average capital employed. Capital Employed is

defined as shareholders’ equity + Net financial debt + Adjustment for associates and financial assets .

We confirm our long-term financial objectives


PERFORMANCE TARGET CAPITAL EFFICIENCY TARGET

1.0

0.5

1.5

2.0

2.5

CAGR +10%

2015201220112010 20162013 20142009

DPS (€)

PROGRESSIVE DIVIDEND SHARE BUYBACK

• Dividend targeted at c.50% of net income

• Progressive dividend policy with no year-on-year decline

• ~€1.5bn share buy back completed in 2015-2016 at €57 per

share

• Post DTN closing on June 1, new share buyback program of

around €1bn over 24 months.

FY 2016

555

FY 2014

571

… and our strong focus on shareholders returns


Share count at year end (adjusted for treasury

shares)

• Committed to profitable growth & believe some past headwinds are beginning to ease

• Unique set of energy and efficiency technologies, strategically positioned on Demand-side

• Accelerating our high-performing businesses: Building, IT and Industry, turning around Infrastructure.

• Well advanced in digitization and already solving real customer issues through EcoStruxure

• Working systematically on margin improvement through identified levers

• Prioritizing on earning growth and shareholder value

Key takeaways


schneider electric presentation · schneider electric presentation. disclaimer all forward-looking...

Documents